Joomla - Virtuemart Image's Blurry

When uploading our client images to the store the image thumbnail and product page image are blurry and distorted. When the product is showing in the 'gallery' it is perfect. When the product shows the 'thumbnail' in the back end (product area) it is perfect. Just the front end that they are blurry and distorted. We have checked that gd is enabled on the server and we have also checked and unchecked automatically 'resize' in the confi area but still not solved. We also have another probelm that the newsletter template is providing borders around the tables automatically. Two small jobs if you know what you're doing and then we have many more for you as we are a we company. This one is urgent could you only respond if you know what you're doing or have had experience with this type of problem. Many thanks.